Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg Data.
Speaker 2: Now, let's take a look at some of the stocks
Speaker 2: on the move here in Europe. I'm Caroline Hepga and
Speaker 2: I'm joined by Bluebeg's Markets Today editor Sam Onsted. Sam,
Speaker 2: let's start with oil, a key part of the Middle
Speaker 2: East story today. How is shelf faring and other stocks
Speaker 2: attached to the oil market?
Speaker 3: Yeah, so, I think you know, this is probably you know,
Speaker 3: the main mechanism through which all of this concern and
Speaker 3: the geopolitical concern is feeding into markets. But you know,
Speaker 3: so oil prights is up at the moment, you know,
Speaker 3: on my screens at about nine percent. For break crud,
Speaker 3: oil stops aren't quite rising that much, so they're all up.
Speaker 3: The stock six hundred Energy index is at a new
Speaker 3: record high. It has been heading in that direction pretty
Speaker 3: consistently over the course of the last year or so,
Speaker 3: and certainly since they're kind of tariff chaos last year.
Speaker 3: But yeah, you know, the key question not only for
Speaker 3: all stocks, but I suppose for broader markets as well,
Speaker 3: is how long this goes on for how sustained it is.
Speaker 3: But right now you're seeing a kind of knee jerk
Speaker 3: pricing in a much higher oil price in the short term.
Speaker 2: Yeah, absolutely, USR price is also surging eight percent for
Speaker 2: WCI crewed and natural gas prices in Europe and the
Speaker 2: UK really seeing a big jump in natural gas prices
Speaker 2: in the UK up almost thirty percent. Defense stocks, though
Speaker 2: more broadly, have gained of course, on the concerns about
Speaker 2: ongoing conflict. Tell me which stocks have gained on that.
Speaker 3: Yeah, again, pretty much all of them and another you know,
Speaker 3: fairly predictable move BA systems for example, as much as
Speaker 3: I think eight percent earlier on today, some of those
Speaker 3: games are pared a little bit, but again very strong
Speaker 3: performance there, and effectively by defense companies becoming kind of
Speaker 3: defensive stocks. When things like this happen, you know, there's
Speaker 3: a very clear runway for out of the outlook for
Speaker 3: them for spending from governments around the world, and this
Speaker 3: only kind of strengthens that case.
Speaker 2: Lastly, travel stocks, there have been flight cancelations, very widespread
Speaker 2: broad flight cancelations in the Middle East. Obviously, what does
Speaker 2: that mean for the likes of IAG and the other
Speaker 2: travel and tourism stocks.
Speaker 3: So this is the flip side really of the story
Speaker 3: we were just talked about, particularly when it comes to oil.
Speaker 3: So you've got the combination of oil going up, so
Speaker 3: there's again a kind of knee jerk reaction to the
Speaker 3: potential that fuel costs are going to go up quite
Speaker 3: significantly for airlies. But probably more significant is what you
Speaker 3: just mentioned Caroline, not just you know, flight shutdowns and
Speaker 3: operations being shut down, but in an extremely important part
Speaker 3: of the global airline industry, you know, particularly from Dubai
Speaker 3: and the UAE, extremely important for you sort of super
Speaker 3: connector hub for the airline industry. So it's crippling for
Speaker 3: the whole industry. And again the question will be how
Speaker 3: long does this go on for how sustained is this
Speaker 3: before you can really start to understand how much of
Speaker 3: a financial hit these companies are going to take.
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